Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 190 $ 270 Accounts receivable, net 300 320 Inventory 270 240 Prepaid expenses 20 20 Total current assets 780 850 Plant and equipment, net 1,000 1,060 Total assets $ 1,780 $ 1,910 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 240 $ 270 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 330 360 Bonds payable 230 360 Total liabilities 560 720 Stockholders’ equity: Common stock, $2 par value 200 200 Additional paid-in capital 330 330 Retained earnings 690 660 Total stockholders’ equity 1,220 1,190 Total liabilities & stockholders’ equity $ 1,780 $ 1,910 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,340 Cost of goods sold 840 Gross margin 500 Selling and administrative expense 415 Net operating income 85 Interest expense 20 Net income before taxes 65 Income taxes (30%) 20 Net income $ 45
Hyrkas Corporation's most recent
| Balance Sheet | ||
| December 31, Year 2 and Year 1 | ||
| (in thousands of dollars) | ||
| Year 2 | Year 1 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $ 190 | $ 270 |
| 300 | 320 | |
| Inventory | 270 | 240 |
| Prepaid expenses | 20 | 20 |
| Total current assets | 780 | 850 |
| Plant and equipment, net | 1,000 | 1,060 |
| Total assets | $ 1,780 | $ 1,910 |
| Liabilities and |
||
| Current liabilities: | ||
| Accounts payable | $ 240 | $ 270 |
| Accrued liabilities | 50 | 50 |
| Notes payable, short term | 40 | 40 |
| Total current liabilities | 330 | 360 |
| Bonds payable | 230 | 360 |
| Total liabilities | 560 | 720 |
| Stockholders’ equity: | ||
| Common stock, $2 par value | 200 | 200 |
| Additional paid-in capital | 330 | 330 |
| 690 | 660 | |
| Total stockholders’ equity | 1,220 | 1,190 |
| Total liabilities & stockholders’ equity | $ 1,780 | $ 1,910 |
| Income Statement | |
| For the Year Ended December 31, Year 2 | |
| (in thousands of dollars) | |
| Sales (all on account) | $ 1,340 |
|---|---|
| Cost of goods sold | 840 |
| Gross margin | 500 |
| Selling and administrative expense | 415 |
| Net operating income | 85 |
| Interest expense | 20 |
| Net income before taxes | 65 |
| Income taxes (30%) | 20 |
| Net income | $ 45 |
Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 per share.
Required:
Compute the following for Year 2:
a. Gross margin percentage. (Round your answer to 1 decimal place.)
b. Earnings per share. (Round your answer to 2 decimal places.)
c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.)
e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)
f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)
g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)
h. Book value per share. (Round your answer to 2 decimal places.)
i.
j.
k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)
l. Accounts receivable turnover. (Round your answer to 2 decimal places.)
m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
n. Inventory turnover. (Round your answer to 2 decimal places.)
o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
p. Times interest earned ratio. (Round your answer to 2 decimal places.)
q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)
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